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A
collection of Philippine laws, statutes and codesnot
included or cited in the main
indicesof
the Chan Robles Virtual Law Library.

This page features the full text of
Republic Act No. 7835Comprehensive
and Integrated Shelter Financing Act of 1994AN
ACT PROVIDING FOR A COMPREHENSIVE AND INTEGRATED SHELTER AND URBAN
DEVELOPMENT
FINANCING PROGRAM BY INCREASING AND REGULARIZING THE YEARLY
APPROPRIATION
OF THE MAJOR COMPONENTS OF THE NATIONAL SHELTER PROGRAM, INCLUDING THE
ABOT-KAYA PABAHAY FUND UNDER REPUBLIC ACT NO. 6846, AUGMENTING THE
AUTHORIZED
CAPITAL STOCK AND PAID-UP CAPITAL OF THE NATIONAL HOME MORTGAGE FINANCE
CORPORATION (NHMFC) AND THE HOME INSURANCE AND GUARANTY CORPORATION
(HIGC),
IDENTIFYING OTHER SOURCES OF FUNDING AND APPROPRIATING FUNDS FOR THE
PURPOSES.

REPUBLIC
ACT NO. 7835

AN
ACT PROVIDING FOR A COMPREHENSIVE AND INTEGRATED SHELTER AND URBAN
DEVELOPMENT
FINANCING PROGRAM BY INCREASING AND REGULARIZING THE YEARLY
APPROPRIATION
OF THE MAJOR COMPONENTS OF THE NATIONAL SHELTER PROGRAM, INCLUDING THE
ABOT-KAYA PABAHAY FUND UNDER REPUBLIC ACT NO. 6846, AUGMENTING THE
AUTHORIZED
CAPITAL STOCK AND PAID-UP CAPITAL OF THE NATIONAL HOME MORTGAGE FINANCE
CORPORATION (NHMFC) AND THE HOME INSURANCE AND GUARANTY CORPORATION
(HIGC),
IDENTIFYING OTHER SOURCES OF FUNDING AND APPROPRIATING FUNDS FOR THE
PURPOSES.

SECTION
1. Title. — This Act shall be
known as the "Comprehensive and Integrated Shelter Financing Act of
1994." chan
robles virtual law library

Sec.
2. Declaration of Policy. — It
is hereby declared a policy of the State to undertake, in cooperation
with
the private sector, a continuing program of urban land reform and
housing
which will make available, at affordable cost, decent housing and basic
services to underprivileged and homeless citizens in urban centers and
resettlement areas.chanrobles virtual law library

In
recognition of the role of housing as catalyst of economic growth and
development,
it is hereby declared a state policy to strengthen, promote and support
the component activities of housing production and finance.cralaw

Sec.
3. Statement of Objectives. —
Towards this end, the State shall:

(a) Ensure
continuous funding support to vigorously implement the government's
programs
for urban and rural housing, resettlement, the development of sites and
services, and the renewal of blighted areas; chan
robles virtual law library

(b) Enhance
the capability of low-income groups to acquire decent and low-cost
housing
units through the introduction of support mechanisms and facilities
which
shall render affordable such acquisitions;

(c) Provide
for a strong and sustainable housing finance program with complementary
support systems, which will pump prime, build up and strengthen
available
sources of cheap and long-term capital;

(d) Increase
the public and private sectors' participation in the investment of
their
funds into the mainstream of housing finance for developmental and
end-user
financing requirements of the National Shelter Program;

(e) Enjoin
the active participation of the local government units in the
socialized
housing programs through adequate measures for housing development in
their
respective areas; chan
robles virtual law library

(f) Strengthen
the capital base and optimize the resources of the National Government
and the government's housing institutions towards a balanced,
coordinated
and integrated shelter delivery system;

(g) Serve
the housing requirement of all the underprivileged and those gainfully
employed but are not members of any funding agencies such as GSIS, SSS,
and Pag-IBIG; and

(h) Focus
the government's full financial, technical and manpower resources in
addressing
the shelter needs of the lowest thirty percent (30%) of the population
and with the private sector's cooperation, the higher socioeconomic
percentiles
of our country's population.

Sec.
4. National Shelter Program Implementation.
— Consistent with the aforementioned policy and objectives, the Housing
and Urban Development Coordinating Council (HUDCC), through the
respective
agencies, shall intensify the implementation of the vital components of
the National Shelter Program requiring government budgetary assistance
as follows:

(a) Resettlement
Program. — This program shall involve land acquisition and site
development
by the National Housing Authority to generate serviced homelots for
families
displaced from sites earmarked for government infrastructure projects,
those occupying danger areas such as water ways, esteros, railroad
tracks
and those qualified for relocation and resettlement assistance under
Republic
Act No. 7279. To sustain this
program, the NHA shall engage in land banking activities to ensure
availability
of land.

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robles virtual law library

(b) Medium-Rise
Public and Private Housing. — This shall entail the construction of
medium-rise
residential buildings by the government and/or private developers in
all
high-density urban areas of the country to maximize the utilization of
scarce, high-cost urban land, except in areas where there are existing
arrangements on housing and/or land utilization prior to the
effectivity
of this Act. Low-income families
and other beneficiaries as defined in Republic Act No. 7279 shall gain
access to the program either through direct sale with homebuyers'
financing
assistance or through lease arrangement depending on the affordability
of the intended beneficiaries.chanrobles virtual law library

Implementation
of this program shall be carried out by the following agencies:

(1) The
National Housing Authority (NHA). — The NHA is hereby mandated to
formulate
policies and guidelines pertinent to the implementation of the
Medium-Rise
Public and Private Housing Programs. It shall likewise take over
portions
of military lands in Metro Manila and other urban areas, except those
previously
identified and segregated for specific purposes pursuant to pertinent
legal
issuances for the development of Medium-Rise Housing. It
is likewise mandated to formulate, adopt and promulgate systems that
will
enable the private sector to participate in the Medium-Rise Housing
Program
of the government to augment current rental housing stock;

chan
robles virtual law library

(2) The
National Home Mortgage Finance Corporation (NHMFC). — The NHMFC is
hereby
mandated to provide homebuyer's financing, to formulate and implement a
schedule of amortization payments for the Medium-Rise housing
facilities
and implement schemes that would ensure an effective and efficient
recovery
and collection of government investments in the program;

(3) The
Local Government Unit (LGU) or the Public Estates Authority (PEA). —
Upon
the completion of all public rental housing facilities constructed
under
this program, the LGU or the PEA shall assume the administration of the
said facilities to include the implementation of the Estate Management
Policies and to ensure the efficient and effective recovery and
collection
of rental and other fees due the government from the beneficiaries of
the
public housing program. It
shall maintain the physical integrity of the public rental housing
facilities
including those of its immediate environs. The
HUDCC, NHA and PEA are mandated to formulate the policies and
guidelines,
rules and regulations in the administration and management of the
public
rental housing facilities, in consultation with the LGU and the
Presidential
Commission for the Urban Poor; and

(4) The
Presidential Commission for the Urban Poor (PCUP). — The PCUP is hereby
mandated to coordinate with the NHA, and the concerned LGU or the PEA
in
the identification and processing of qualified beneficiaries of public
rental housing facilities provided for in this Act. The
PCUP shall likewise formulate and implement preoccupancy educational
programs
to enable the beneficiaries of the program to adapt to medium-rise
living
conditions, and shall organize them into homeowners associations which
would ensure proper day-to-day maintenance of said facilities.

(c) Community
Mortgage Program. — Under R.A. No. 7279, this program, through the
National
Home Mortgage Finance Corporation (NHMFC), shall assist organized
community
associations to acquire tenure and ownership of the land they are
presently
occupying adverse against the interests of landowners. Financing
at very low interest rate is granted to beneficiaries to purchase the
land
as a whole and to improve the sites. chan
robles virtual law library

chan
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(d) Cost
Recoverable Programs. — These programs shall involve the development of
sites with housing component and the provision of serviced homelots
through
joint-venture schemes with the private sector or local government
units. Program
beneficiaries shall fully repay on installment basis the financial
assistance
granted for the purchase of the housing units.chanrobles virtual law library

(e) Local
Housing. — To ensure the equitable distribution of housing benefits
across
the country, the NHA is hereby tasked to implement cost-recoverable
socialized
housing projects in selected urban and urbanizable areas in all
congressional
districts. Criteria for the
selection of sites shall be formulated by the HUDCC and NHA pursuant to
Republic Act No. 7279.

Sec.
5. Trust Fund for the National
Housing Authority. — To enable the National Housing Authority to carry
out the programs mandated under this Act, specifically the Medium-Rise
Public and Private Housing and the Local Housing Programs, a Trust Fund
to be managed and administered by the NHA is hereby created. The
mechanics
of said Trust Fund shall be formulated by the NHA, the Department of
Finance,
the Department of Budget and Management and other concerned agencies in
accordance with pertinent policies and subject to auditing and
accounting
procedures of the Commission on Audit.chanrobles virtual law library

chan
robles virtual law library

Sec.
6. Capitalization of National
Home Mortgage Finance Corporation (NHMFC). — The authorized capital
stock
of the NHMFC is hereby increased from Five hundred million pesos
(P500,000,000)
to Five billion five hundred million pesos (P5,500,000,000) to expand
its
leveraging capability based on the volume of mortgage loans being
serviced,
to improve its profitability by reducing the average cost of its funds
made available for home-lending programs, and to enable the NHMFC to
maintain
the debt-to-equity ratio of 10:1. Thus,
Section 3 of Presidential Decree No. 1267 is hereby amended to read as
follows:

"SEC.
3. Capitalization. — The
Corporation shall have an authorized capital stock of Five billion five
hundred million pesos (P5,500,000,000) divided into Five million five
hundred
thousand (5,500,000) shares of common stocks with a par value of One
thousand
pesos (P1,000) per share, to be fully subscribed and paid by the
Government
of the Republic of the Philippines.chanrobles virtual law library

"There
shall be a continuing annual appropriation to be remitted to the
Corporation
starting from calendar year 1995, and subsequently thereafter until the
entire authorized capital stock shall have been fully paid: Provided,
however, That the National Government loan relent to the
corporation
in the amount of US$76.73 Million under the World Bank Financed Housing
Sector Project is hereby converted to equity."

Sec.
7. Capitalization of Home Insurance
and Guaranty Corporation (HIGC). — The authorized capital stock of the
HIGC is hereby increased from One billion pesos (P1,000,000,000) to Two
billion five hundred million pesos (P2,500,000,000) to strengthen the
capability
of the Corporation in the provision of guarantee, loan/credit insurance
and other incentives to assist home building/development and to sustain
housing finance: Provided, however, That the aggregate amount
of
the outstanding guaranty obligations shall not, at any one time, exceed
twenty (20) times the capital and surplus of the HIGC.chanrobles virtual law library

chan
robles virtual law library

Accordingly,
Sections 3 and 5 of Executive Order No. 535 are hereby amended to read
as follows:

"SEC.
3. The authorized capital of
the Corporation shall be Two billion five hundred million pesos
(P2,500,000,000),
divided into Two million five hundred thousand (2,500,000) shares of
common
stocks, with a par value of One thousand pesos (P1,000) per share to be
fully subscribed and paid by the Government of the Republic of the
Philippines."

"There
shall be a continuing annual appropriation of at least Three hundred
million
pesos (P300,000,000) starting 1995 and subsequently thereafter until
the
entire authorized capital stock of the Corporation shall have been paid
in full.chanrobles virtual law library

chan
robles virtual law library

"SEC.
5.The Republic of the Philippines
hereby guarantees to payment by the Corporation both of the principal
sums
and interests of the bonds, debentures, collateral, notes or other such
obligations of the Corporation, issued or incurred by virtue of its
Charter
and this Executive Order and shall pay such principal sums and interest
in the event that the Corporation fails to do so: Provided, however,
That the aggregate amount of the outstanding obligations shall not, at
any one time, exceed twenty (20) times the capital and surplus of the
Corporation.chanrobles virtual law library

"In
such event, the Republic of the Philippines shall succeed to all the
rights
of the holders of such bonds, debentures, collateral, notes or other
instruments
to the extent of the payments made, unless the sums so paid by the
Republic
of the Philippines shall be refunded by the Corporation within a
reasonable
time."

Sec.
8. Expanding the Scope and Usage
of the Abot-Kaya Pabahay Fund. — To be more responsive to the need of
enhancing
affordability of low-income families to acquire housing and to provide
a strong support for the operation of a secondary mortgage market
system
by the NHMFC as a stable source of long-term funds for housing finance,
the Abot-Kaya Pabahay Fund shall be made a continuing support system of
the National Shelter Program, with its scope, usage and coverage
accordingly
expanded. chan
robles virtual law library

chan
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The
existing total budgetary allocation of Two Billion Five Hundred Million
Pesos (P2,500,000,000) of the Abot-Kaya Pabahay Fund under Republic Act
No. 6846 shall be increased to Five Billion Five Hundred Million Pesos
(P5,500,000,000) and shall be appropriated until such time that the
total
funding required under this Act shall have been released.chanrobles virtual law library

(a) Additional
One Hundred Million Pesos (P100,000,000) annually to the cash flow
guarantee
to extend the mortgage insurance coverage for housing loans within the
lowest interest loan package under the Unified Home Lending Program as
a cushion against loan delinquency and ensure a viable cash flow for
agencies
extending housing loans.chanrobles virtual law library

chan
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(b) Annual
allocation of Five Hundred Million Pesos (P500,000,000) as liquidity
and
interest/subsidy support to the secondary mortgage market operation of
NHMFC to serve as an alternative mechanism for sourcing housing funds,
tapping in the process private and public long-term development
funds.chanrobles virtual law library

The
Abot-Kaya Pabahay Fund shall be allocated annually among its various
components
in the following amounts:

P300
Million—Cash
flow guarantee;

chan
robles virtual law library

P500
Million—Interest
subsidy and liquidity support;

P200
Million—Amortization
support; and

P100
Million—Development
financing.

The
Housing and Urban Development Coordinating Council (HUDCC) shall, from
time to time, determine the income ceilings and the loanable amounts
for
both levels (a) and (b) borrowers and the socialized/low-cost housing
limit
eligible for development financing. chan
robles virtual law library

The
Abot-Kaya Pabahay Fund shall bear the cost of its administration and
development
in such amount and/or limits as the administering agencies shall deem
appropriate,
but not exceeding three percent (3%) of the net assets of the previous
year. Expenses for organization
and initial operation shall be provided by the administering agencies
as
advances, subject to reimbursement.chanrobles virtual law library

Sec.
9. Appropriations by the National
Government. — The corresponding amounts specified hereunder shall be
appropriated
annually for a period of five (5) years or until such time that the
total
fund requirement provided for in this Act shall have been fully
released
specifically for the following programs:

(a) Five
Billion and Two Hundred Million Pesos (P5,200,000,000) to finance the
Resettlement
Program under Section 4(a) of this Act;

(b) Three
Billion Pesos (P3,000,000,000) as subsidy for land acquisition,
construction
and implementation of the Medium-Rise Public and Private Housing
Program
mandated under Section 4(b) of this Act;

chan
robles virtual law library

(c) Twelve
Billion Seven Hundred Eighty Million Pesos (P12,780,000,000) for the
community
mortgage program under Section 4(c) of this Act;

(d) Two
Billion Five Hundred Forty-Two Million Pesos (P2,542,000,000) for the
cost
recoverable program under Section 4(d) of this Act; and

(e) Three
Billion Pesos (P3,000,000,000) for the Local Housing Program under
Section
4(e) of this Act.

There
shall be a continuing annual appropriation in the total amount of not
less
than Five Billion Pesos (P5,000,000,000) starting from the fiscal year
1995 and every fiscal year thereafter until such time that the total
funding
requirement under this Act shall have been fully released: Provided,
however, That any fund in excess of the total funding requirements
under this Act that may be derived from any or all of the sources
provided
herein, shall be used to augment the NHA's Resettlement Program fund to
cushion the impact of displacement arising from eviction and demolition
as provided in Section 28 of R.A. No. 7279, to wit:

(a) When
persons or entities occupy danger areas such as esteros, railroad
tracks,
garbage dumps, river banks, shorelines, waterways, and other public
places
such as sidewalks, roads, parks and playgrounds;

chan
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(b) When
government infrastructure projects with available funding are about to
be implemented; or

(c) When
there is a court order for eviction and demolition.

Sec.
10. Fund Sources. — The National
Government is hereby mandated to allocate and appropriate the necessary
funds for the continuing requirements of this Act, including whatever
funds
which may be made available from, but not limited to, the following
sources: chan
robles virtual law library

"SEC.
22. The incremental revenues
from the increase in the documentary stamp taxes under this Act shall
be
set aside for the following purposes: chan
robles virtual law library

"(a) Twenty-five
percent (25%) of the incremental revenues in 1994 and 1995 under this
Act
shall be automatically appropriated for the Unified Home Lending
Program
under Executive Order No. 90 particularly for mass-socialized housing
to
be allocated as follows:fifty percent
(50%) for mass-socialized housing; thirty percent (30%) for the
community
mortgage program administered by the National Home Mortgage Finance
Corporation;
and twenty percent (20%) for land banking and development to be
administered
by the National Housing Authority: Provided, That not more than
one percent (1%) of the respective allocations hereof shall be used for
the administrative expenses: Provided, further, That incremental
revenues
not appropriated in 1994 and 1995 shall be carried over to succeeding
years
until allocations herein provided shall have been fully
exhausted."

xxx xxx xxx

"(B) Forty
percent (40%) of the mandatory fifty percent (50%) share of the
National
Government from the annual aggregate gross earnings of the Philippine
Amusement
and Gaming Corporation (PAGCOR), as provided for in Section 12 of
Presidential
Decree No. 1869, beginning 1996.

"(C) Twelve
percent (12%) of all the proceeds of any sale, after deducting all
expenses
related to the sale, of portions of Metro Manila military camps shall
be
used to finance mass social housing projects for underprivileged and
homeless
citizens of the country. Section
8 of Republic Act No. 7227, therefore, is hereby amended
accordingly.

"(D) All
fund sources outlined in Republic Act No. 7279, not accruing to the
local
government units, to wit:

"(1) A
minimum of fifty percent (50%) from the annual net income of the Public
Estates Authority to be used by the National Housing Authority to carry
out its program of land acquisition for resettlement purposes;

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"(2) Proceeds
from ill-gotten wealth not otherwise previously set aside for any other
purpose;

"(3) Loans,
grants, bequests and donations, whether from local or foreign sources;
and

"(4) Proceeds
from the sale or disposition or alienable public lands in urban
areas.

"(F) A
maximum of fifty percent (50%) of savings from the budgeted amount for
debt servicing.chanrobles virtual law library

Sec.
11. Other Fund Sources. — The
following non-budgetary funding sources shall be used to augment those
mentioned in the preceding section in the implementation of a
Comprehensive
and Integrated Shelter and Urban Development Financing Program:

(a) Ten
percent (10%) of the mandatory annual contributions by Philippine
Charity
Sweepstakes Office to the charity fund as provided for in Section 6 of
R.A. No. 1169 shall be channeled to socialized and low-cost
housing;

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(b) All
unused agri-agra allocation funds from banks in the preceding year
shall
be invested in socialized and low-cost housing: Provided, That the used
agri-agra portion has been solely devoted to agricultural or agrarian
reform
credit; and

(c) The
Bangko Sentral ng Pilipinas shall make available its rediscounting
facilities
to institutions or entities providing financing for socialized and
low-cost
housing in amounts and rates to be determined by the Monetary Board,
taking
into consideration the policy of the State as enunciated in this
Act.

Sec.
12. Audit. — The Commission on
Audit shall be the ex-officio Auditor of all the funds provided for in
this Act and is, accordingly, empowered to designate and appoint its
representative(s)
and other subordinate personnel to perform such necessary audit duties
as the Commission shall direct. They
shall be responsible to and shall only be removed by the Commission on
Audit.chanrobles virtual law library

chan
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Sec.
13. Reports and Funding Program.
— The National Shelter Agencies are hereby mandated to submit
semi-annual
reports of their operations, fund usage and performance to the Office
of
the President and Congress. They
shall likewise submit to Congress their plans and funding programs for
the succeeding year not later than the first quarter of the current
year.chanrobles virtual law library

Sec.
14. Sunset Review. — As the need
arises, the Congress shall conduct a sunset review of the
accomplishments
and impact of the National Shelter Program as well as the performance
of
its implementing agencies for purposes of determining whether or not
the
programs and the corresponding appropriations mentioned in this Act
deserve
to be continued based on a cost-benefit analysis thereof. If
the result of the review is unfavorable to any program or its
appropriate
implementing program, then the Committee of Congress that has
legislative
jurisdiction over such entity shall not report favorably any bill or
resolution
which authorizes the enactment of a new budget authority on such
entity. chan
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For
purposes of this Act, the term "sunset review" shall mean, with respect
to any government program, a systematic evaluation by the committees of
the Senate and House of Representatives which have legislative
jurisdiction
over such programs, with the assistance of appropriate agencies and
congressional
support agencies, to determine the merits of the program, justify its
continuation
rather than termination or its continuation at a level less than, equal
to, or greater than the existing level. Such
review shall be undertaken in the scope and the detail the committee
having
jurisdiction deems appropriate and shall include, but not limited to,
an
assessment of the degree to which the original objective of the program
has been achieved, of the problem it was intended to address, and the
costs
and benefits of the program.cralaw

Sec.
15. Implementing Rules and Regulations.
— The HUDCC shall promulgate rules and regulations necessary for the
implementation
of this Act.cralaw

Sec.
16. Repeal. — All laws, decrees,
executive orders, proclamations, rules and regulations and the
issuances,
or parts thereof which are inconsistent with the provisions of this
Act,
are hereby repealed, amended or modified accordingly. chan
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Sec.
17. Separability. — If for any
reason, any provision of this Act is declared invalid or
unconstitutional,
the remaining provisions not affected thereby shall continue to be in
full
force and effect.cralaw

Sec.
18. Effectivity. — This Act shall
take effect fifteen (15) days after its complete publication in at
least
two (2) national newspapers of general circulation.